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Euro lower against U.S. dollar

Euro lower against U.S. dollar

The euro was lower against the U.S. dollar Thursday as strong U.S. job market figures offset an expected rise in European interest rates.
The euro bought US$1.2678 in afternoon European trading, compared with US$1.2713 in New York late Wednesday.
The British pound bought US$1.8761, down sharply from Wednesday's US$1.8864 after the Bank of England left its interest rates unchanged at a meeting Thursday.
In contrast, the dollar slipped to 117.60 Japanese yen from 117.89 yen.
The European Central Bank raised its refinancing rate by a quarter point to 3.25 percent at a meeting in Paris, the fifth quarter-point increase since December, and hinted that another rate increase is in the offing before next year.
Higher rates usually support a currency by making certain classes of investment more attractive.
However, ECB president Jean-Claude Trichet had already signaled the latest move in August and currency markets appeared to be taking their cue from U.S. economic data.
According to the Labor Department, the number of newly laid off workers filing claims for jobless benefits in the United States dropped to the lowest level in 10 weeks.
It was the second consecutive week that claim applications have fallen, suggesting that the slowdown in the U.S. economy has not yet triggered big layoffs.
Several big U.S. retailers also announced stronger than expected September sales on Thursday.
Better economic data could ease the chances of the U.S. Federal Reserve reducing interest rates.
Rising rates have boosted the dollar for the past two years as the Fed sought to keep growth from fueling inflation.
However, slowing growth has convinced most economists that it will keep interest rates unchanged for the rest of the year.


Updated : 2021-06-24 05:34 GMT+08:00